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Why Snap (SNAP) Outpaced the Stock Market Today

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Snap (SNAP - Free Report) closed at $8.69 in the latest trading session, marking a +1.76% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 1.35%.

The company behind Snapchat's stock has dropped by 18.36% in the past month, falling short of the Computer and Technology sector's loss of 6.4% and the S&P 500's loss of 6.19%.

The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. The company is predicted to post an EPS of -$0.04, indicating a 150% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.11 billion, showing a 1.94% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0 per share and revenue of $4.5 billion, which would represent changes of -100% and -2.13%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Snap. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.4% increase. Snap is holding a Zacks Rank of #2 (Buy) right now.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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